Indonesian Government Officially Shuts Down TikTok Shop

Jakarta – The social media platform, TikTok officially shutted down TikTok on October 4, at 5 PM local time after the government mandated TikTok Shop to obtain an electronic commerce license.

Despite being provided a seven-day window to apply for the license, TikTok Shop didn't comply. 

The Indonesian Minister of Cooperatives and Small and Medium Enterprises Teten Masduki stated the government appreciates TikTok Shop's compliance. This is in accordance with the Minister of Trade Regulation (Permendag) Number 31 of 2023.

"The government appreciates TikTok Shop for complying with existing regulations in Indonesia and understanding the economic impact that we need to protect," Minister Masduki said in an official statement, Jakarta, on Wednesday.

In accordance with Article 67 of the Minister of Trade Regulation Number 31 of 2023, TikTok Shop must close its business and services since September 25, 2023 or since the regulation was issued.

"The government through this new regulation seeks to create a sustainable business ecosystem both online and offline, which protects MSMEs and domestic products,"  Minister Masduki informed.

Moreover, the Minister emphasized that sellers and affiliates can still promote their products on TikTok. This is because only e-Commerce services can become sellers and product affiliates on other marketplace platforms.

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11 November 2024